how to do part B & C

Required Using the given data, calculate the name and below for 9.Co this for Instruments, Inc., with the following day wis per Median Ratios for the Industry 1. Current ratio 2 Quick ratio 2.7 16 73 days 0.22 3. Average collection period 4. Inventory turnover 5. Operating-cash-flow-to-current-imbesti 6. Debt-to-equity ratio 7. Return on assets 8. Return on common 9. Return on sales Calculate the dividends paid per share of common stock. Use amber of share outstanding during the year.) What was the dividend payout to? (1) price-camnings ratio and (2) dividend yield? stockholders' equity 49 cc 10.2 cm 4.1 cm commenstock iu 525, what is the company's Solution 1. Current ratio = $95.000/545.200 = 2.10 2. Quick ratio - $31,000/545.200 =0.69 3. Average collection period: Accounts receivable turnover = $200,000/1528.800 +$28.00072-704 Average collection period = 365/7_04 = 518 days 4. Inventory turnover = $98.000/($44,000 + $64,8002 = 181 5. Operating-cash-flow-to-current-liabilities ratio = 5780539,750 + $45.2002 - 018 6. Debt-to-equity ratio = $65.200/$105.800 = 0.62 Return on assets = $10.750XS143,000 + $171.000)/2 = 6.5 percent Return on common stockholders' equity = $10.7507589.250 + S10530012 - 11.9 percent Return on sales = $10,750/5200,000 - 5.4 percent Although the firm's current ratio of 2.10 is below the industry median. it is still acceptable, however, the quick ratio of 0.69 is well below the industry median. This indicates that Kaen 's mentory (which is comil ted from this calculation) is excessive. This is also bome out by the firm's inventory turnover of 181 times which compares with the industry median of 2.3 times. The firm's average collection period od 18 days in 7. 8 9. significantly better than the industry median of 73 days, while the operating cash flow.s-current-liabilities ratio is close to the industry median. Knox's debt-to-cquity ratio of 0.62 indicates that the firm has proper tionately more debt in its capital structure than the median industry firm, which has a debt-to-equity ratio of 0.50. Knox's operations appear efficient as its return on assets, retam on comie sockholders equity, and return on sales all exceed the industry medians. b. Average number of shares outstanding = (4.000.000 + 3.000.000/2 = 3.500.000 shares $4.200.000 dividends/3,500,000 shares = $1.20 dividend per share Dividend payout ratio = $1.20/53.07 = 39.1 percent. c. Price-camings ratio = $25/53.07 = 8.1. Dividend yield = $1.20/525 = 4.8 percent. APPENDIX 13A: Financial Statement Discla (1) parenthetical dis- mary COMPREHE 2019 Knox Instruments, Inc., is a manufactur for the firm follow: MEC $200.000 98.000 10.750 4.200 7800 (thousands of dollars, except per-share amount) 1 3.07 Sales revenue... Cost of goods sold ........ Net income. ++++++ Dividends Cash provided by operating activities... Earnings per share.... KNOX INSTRUMENTS, INC. Balance Sheets Dec. 31, 2019 Dec. 31, 2018 (thousands of dollars) Assets Cash Accounts receivable (net) Inventory. Total current assets. Plant assets (net) Total assets $ 3,000 28,000 64,000 95,000 76,000 $171.000 $ 2,900 28,800 44,000 75,700 67,300 $143,000 #... Liabilities and Stockholders' Equity Current liabilities 10% bonds payable Total liabilities Common stock, $10 par value Retained earnings Total stockholders' equity. Total liabilities and stockholders' equity 45,200 20,000 65,200 40,000 65,800 105,800 $171,000 $ 39,750 14,000 53,750 30,000 59,250 89,250 $143,000